debit credit

Cash $ 29,500 Accounts Receivable $58,000

Allowance for Doubtful Accounts $686

Supplies 1,750

Prepaid Insurance 1,230

Equipment 30,400

Accumulated Depreciation-Equipment 6,462

Notes Payable 7,200

Common Stock 10,000

Retained Earnings 24,057

Service Revenue 117,003

Rent Expense 8,918

Salaries and Wages Expense 33,340

Utilities Expenses 1,510

Office Expense 760

$165,408

$165,408

1.		Fees received in advance from clients $6,060, which were recorded as revenue.
2.		Services performed for clients that were not recorded by December 31, $4,990.
3.		Bad debt expense for the year is $1,570.
4.		Insurance expired during the year $483.
5.		Equipment is being depreciated at 10% per year.
6.		John gave the bank a 90-day, 10% note for $7,200 on December 1, 2020.
7.		Rent of the building is $686 per month. The rent for 2020 has been paid, as has that for January 2021, and recorded as Rent Expense.
8.		Office salaries and wages earned but unpaid December 31, 2020, $2,604.